0845 838 2406
Call
For FREE Advice
Take Advantage of our FREE Advice Offer Call 0845 838 2406 Now Open 7 Days a Week
Copyright © 2009 All rights reserved Bankruptcy4u.co.uk Consumer Credit Licence No 626563 Data Protection Licence No Z1760087
Debt Management Plan
Debt management is an informal agreement with you and your creditors, its aim is to freeze
Interest and charges and make one monthly payment to cover all your unsecured debts with
your creditor. Instructing a debt management company on your behalf takes the stress from you,
they will deal with all correspondence from your creditors. Your debts should be over £5000 and they
must be unsecured debts.
Advantage
Interest and charges and make one monthly payment to cover all your unsecured debts with
your creditor. Instructing a debt management company on your behalf takes the stress from you,
they will deal with all correspondence from your creditors. Your debts should be over £5000 and they
must be unsecured debts.
Advantage
|
●
|
Debt management is an informal agreement allowing flexibility for you.
|
|
●
|
You do not have to be insolvent to be in a Debt Management plan.
|
|
●
|
Some creditors will freeze interest and charges whilst in the debt management plan.
|
|
●
|
One monthly reduced payment to cover all your unsecured debts.
|
|
●
|
Assets not normally affected as long as payments are kept up on mortgages and hire purchases.
|
|
●
|
Can be used in the short term to give you breathing space.
|
Disadvantages
|
●
|
Debt management is an informal agreement so your creditors can change their minds at any time.
|
|
●
|
Reduced monthly payments increases the time it takes to pay off the whole debt.
|
|
●
|
Some creditors may not freeze interest and charges.
|
|
●
|
Your credit rating is still affected.
|
|
●
|
Your debt can increase if creditors add charges and interest.
|